The Uganda shilling was relatively stable supported by the Central Bank liquidity mop ups. Demand remained subdued.
Trading was in the range of Ugx. 3590/3600.
In the money market, overnight rate was 10 percent while one week money was at 12 percent.
In the international currency markets, the dollar was bullish amid high US treasury yields.
The robust private sector job report for February also provided a positive sentiment and this added to the market expectation that US Federal Reserve was on course to raise interest rates at its next meeting.
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‘ ‘As the US interest rate hike is imminent, the shilling is likely to weaken marginally as markets watch more closely the commentary on the Federal Reserve stance on rate hike trajectory going forward.’’ Says Stephen Kaboyo, the Alpha Capital Markets boss.